In anticipation of a public offering, General Motors has begun separating the operating results of its Delphi Automotive Systems from those of vehicle assembly. It appears that GM will spin-off about 20% of that parts business in the not too distant future. Wrong move. Splitting off the entire operation is the only way to make Delphi competitive.
GM's parts group has been undergoing a transformation since the 1980s. Back then. none of the components divisions knew its own costs, let alone if it was competitive with outside suppliers. Lacking the discipline of the marketplace made Delphi lazy; tolerant of aging technology and outmoded plants. and unresponsive to the needs of GM, …






